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ABI Journal

December 30, 2024

Delaware Judge Writes a Treatise for Avoiding WARN Act Liability

Good faith and attention to detail should enable a failing business to avoid WARN Act liability.

3rd Circuit, Delaware

December 19, 2024

Sears Landlord Wins Big Supreme Court Appeal But Has Nothing to Show for the Effort

Like she did in Purdue, District Judge Colleen McMahon correctly predicted how the higher court would rule in a big, important case.

2nd Circuit, New York

December 09, 2024

Having Committed Fraud Doesn’t Prevent a Debtor from Vacating a Judicial Lien

If a creditor’s judicial lien is avoided, how can the creditor collect the underlying debt if it’s excepted from discharge?

10th Circuit, New Mexico

November 25, 2024

Purdue Creditors Given Derivative Standing to Sue the Sacklers

Bankruptcy Judge Sean Lane says that Delaware corporate law can’t prevent committees from having derivative standing.

2nd Circuit, New York, New York Southern District

November 05, 2024

Fully Secured, Nonrecourse Creditors Can Be Involuntary Petitioners, BAP Says

An involuntary petitioner whose claim was paid after filing is still counted as an involuntary petitioner, the Ninth Circuit BAP says.

9th Circuit

November 01, 2024

Substantive Consolidation May Proceed by Motion, District Judge Says

A district court in Florida upheld Bankruptcy Judge Peter Russin in holding that substantive consolidation does not require an adversary proceeding, a summons or a complaint.

11th Circuit, Florida, Florida Southern District

October 23, 2024

Equitable Tolling Can Extend Statutes of Limitations Under Section 546(a)

Dilatory actions by a debtor tolled statutes of limitations for a trustee’s suit against a third party.

3rd Circuit, Pennsylvania, Pennsylvania Eastern District

October 08, 2024

Bankruptcy Judge Hursh Denies Arbitration over a Trustee’s Usury Claim

Arbitration was denied over a trustee’s claim objection based on the lender’s violation of state usury laws.

9th Circuit, Montana

October 03, 2024

Third Circuit to Decide: May Magistrate Judges Issue Final Orders on Bankruptcy Appeals?

The Third Circuit will decide whether the broad language in the Federal Magistrate Act allows magistrate judges to issue final orders on bankruptcy appeals when the parties consent.

3rd Circuit

September 27, 2024

Second Circuit Affirmance Shows How Proper Structuring Avoids Merit Management

The Second Circuit shows how a properly structured leveraged refinancing avoids attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’

2nd Circuit